Canada’s Big Five banks aren’t known for offering great interest rates on their high-interest savings accounts. One of those accounts without a competitive rate is the TD High Interest Savings Account.
About TD Canada Trust
TD Canada Trust is TD Bank Group’s personal and small business banking business. It has more than 1,150 branches across the country. You can bank online, through its mobile app, over the phone, and at more than 2,800 ATMs.
Rates
The TD High Interest Savings Account offers an interest rate of 0.55% but only if your balance is more than $5,000. If your balance is less than $5,000, the interest rate is 0%.
| Account balance | Interest rate |
| $0 to $4,999.99 | 0% |
| $5,000 or more | 0.55% |
If you deposit $5,000, the interest rate of 0.55% is the same as what both CIBC and RBC Royal Bank offer. However, the rate is lower than the Scotiabank Momentum Savings Account, which has a rate of 1.50%, and the BMO Bank of Montreal Savings Builder Account, which has an interest rate of 1.25%.
And when you compare TD’s rate to the best rate other financial institutions currently have, it’s much lower than what they’re offering:
| Financial institution | Interest rate |
| Tangerine | 2.40%/0.80%* |
| EQ Bank | 2.25% |
| Alterna Bank | 1.95% |
| Oaken Financial | 1.75% |
| Luminus Financial | 1.75% |
| Achieva Financial | 1.70% |
| Outlook Financial | 1.70% |
| Steinbach Credit Union | 1.60% |
| Meridian Credit Union | 1.50% |
| Scotiabank | 1.50% |
| BMO Bank of Montreal | 1.25% |
| Canadian Western Bank | 1.00% |
| PC Financial | 0.80% |
| ATB Financial | 0.70% |
| CIBC | 0.55% |
| RBC Royal Bank | 0.55% |
| TD Canada Trust | 0.55% |
*currently 2.40% for new clients only for the first 182 days and 0.80% thereafter; rate for current clients is 0.80%
As you can see, there are more than a dozen other financial institutions that offer a better interest rate than TD.
Fees
The TD High Interest Savings Account doesn’t have a monthly fee. But there are a number of transaction fees:
- $2 for each non-TD ATM withdrawal in Canada
- $3 for each ATM withdrawal made in the United States and Mexico
- $5 for each ATM withdrawal outside Canada, the U.S., and Mexico
- $5 for debit transactions (including withdrawals, transfers, cheques, pre-authorized payments, bill payments, and debit payment purchases)
If you’re able to maintain a minimum monthly balance of $25,000 or more, all of your debit transaction fees are waived.
The bottom line
There are a number of financial institutions that offer a better interest rate than what TD’s offering. You can get current rates by comparing the best high-interest savings accounts.